A.g. Barr P.l.c. · LSE:BAG
A.g. Barr P.l.c — FY2023/24 Earnings Presentation
31 slides from A.g. Barr P.l.c's earnings presentation, April 2024
Slide 1: Final Results 52 weeks ended 28 January 2024
ote caeg ote : iatieuirs re re | BUILDING GREAT BRANDS Final Results 52 weeks ended 28 January 2024
Slide 2: Contents
Contents ● Highlights ● Market update Roger White Chief Executive ● Financial review ● Strategic & operational update ● Outlook & summary Stuart Lorimer Finance Director 2
Slide 3: Highlights / Market update
Es HIGHLIGHTS or, & AOR MARKETUPDATE : by "| AGBarr
Slide 4: Highlights
Highlights An excellent financial performance and significant progress across our strategic objectives Revenue Profit Cash position Financial Strong growth to Adjusted PBT £53.6m net cash £400m (+26%) £50.5m (+16%) at bank National brand momentum Winning in Energy & Sports Innovation Brand Greater scal
Slide 5: UK soft drinks market
UK soft drinks market Total UK soft drinks value Total UK soft drinks volume 8.3% 2.9% Carbonates value Carbonates volume 7.8% 3.4% Stills value Stills volume 8.9% 2.4% Source : Circana 52 weeks to 27/01/24 5
Slide 6: Total UK soft drinks market - sub categories
Total UK soft drinks market - sub categories Value, volume and units % Source : Circana 52 weeks to 27/01/24 6
Slide 7: Cocktail market dynamics (on-trade)
Cocktail market dynamics (on-trade) Value of cocktails in Share of spirits GB through cocktails £688m 7.8% +0.5% +0.2% No. of outlets stocking GB consumers drinking cocktails cocktails out of home 43.1K 9.4m -3.3% 20.3% of population 1 # Pornstar Martini # 2 Sex on the Beach 3 # Long Island Iced Tea
Slide 8: Cocktail market - off trade
Cocktail market - off trade RTD 4.3% ▲▲ 3.3% Category RTD ▲19.2% Cocktail Segment ▲14.6% 8 Source: Nielsen Pre Mixed Alcoholic Drinks Total Coverage Data MAT 27/01/2024 ▼1%
Slide 9: Plant-based milk and porridge markets
Plant-based milk and porridge markets Oat nearing 60% of the £369m dairy All sub-segments of the £249m porridge milk alternatives category market in double digit growth 9 Source: Nielsen Total plant-based milk last 2 years w/e 31 Dec 2023 ; Source: Nielsen Total porridge last 2 years w/e 31 Dec 23 9
Slide 10: Financial Review
HERE FOR THE 10 SCOTTISH SUMMER (SO NOT FOR LONG) FINANCIAL REVIEW AGBarr
Slide 11: Financial scorecard
Financial scorecard 2023/24 2022/23 Movement Volumes - Cases (m) 66.4 55.8 ⬤ 19.0% Volumes - Cases (m) Like-for-Like 54.7 53.4 ⬤ 2.4% Revenue - £m 400.0 317.6 ⬤ 25.9% Revenue - £m Like-for-Like 335.2 310.3 ⬤ 8.0% Profit Before Tax - £m 51.3 44.4 ⬤ 15.5% Profit Before Tax - £m Adjusted 50.5 43.5 ⬤ 16.1
Slide 12: Profit (PBT) bridge
Profit (PBT) bridge £m 22/23 23/24 Reported PBT 44.4 51.3 Adjusting Items (0.9) (0.8) Adjusted PBT 43.5 50.5 Adjusted PBT +£7.0m (16.1%) +£6.6m (15.0%) 12
Slide 13: Gross margin
Gross margin +£26m Soft Drinks Margin constrained by full year inclusion of structurally lower margin Boost & Rio. Strong price / mix offset cost inflation in rest of soft drinks portfolio. Cocktail solutions Margin impacted by cost inflation and price / mix associated with supporting on trade custome
Slide 14: Commodities and cost base
Commodities and cost base Aluminium Gas Energy Average price 2023 Average price 2023 Other inc. +16% +131% Marketing v 10 year average v 10 year average Materials Employee Sugar Mango Costs Average price 2023 Average price 2023 +52% +14% v 10 year average v 10 year average Cost base Materials - Mixe
Slide 15: Operating costs
Operating costs Distribution 16% People Costs Services & 45% Supplies, Marketing and Other Costs 39% F23 Operating costs Operating costs (£m) analysis ● Operating costs up 8.0% (+23.8% including Boost) ● Strong cost control partially mitigated the impact of cost pressures ● Primary cost drivers incl
Slide 16: Cash flow & cash allocation
Cash flow & cash allocation Strong cash generation from operations utilised in line with capital allocation principles £60.2m Cash generated from operations 16
Slide 17: Capital investment
Capital investment F22 F23 F24 F25 F26 F27 F28 £15m £18m £20m c.£20m per annum Replacement Cumbernauld refresh - 2 new lines and 1 line upgrade Milton Keynes - processing capability and Inventory management Expansion line upgrade solutions Sustainability Heat pumps, solar, and diesel alternatives in
Slide 18: Balance Sheet
Balance Sheet ● Consistent cash generation ● Strong funding platform and untapped debt capacity provides optionality ● Clear capital allocation framework with progressive dividend policy ● Growing ROCE with medium-term target of 20%+ 18
Slide 19: Strategic & Operational Update
19 STRATEGIC & OPERATIONAL UPDATE
Slide 20: Connecting with consumers & Building brands
Connecting with consumers & Building brands Strong brand momentum across Group portfolio Soft drinks Cocktails Oats Revenue 8% 15% 22% 7% 10% 8% 7% 11% 16% Flat 28% % of Group portfolio 33% 19% 12% 10% 4% 3.5% 1.5% 2.5% 1.5% 10.5% 2.5% Source : AG Barr revenue 20
Slide 21: Building a winning functional drinks portfolio
Connecting with consumers & Building brands Building a winning functional drinks portfolio Energy & Sports ● Fastest growing sub categories within the UK soft drinks market ● Now worth £2.7bn, making up over 20% of the total market 21 Building greater scale and presence in energy as we combine the B
Slide 22: Building IRN-BRU and Rubicon into national brands
Connecting with consumers & Building brands Building IRN-BRU and Rubicion into national brands Awareness Trial Visibility Innovation 22 22
Slide 23: Building trust
Building trust 2023 Highlights 43% reduction in Accident incident Forfar factory - 5 Employee greenhouse gas rate reduced from yrs with zero lost engagement emissions since 4.0 to 2.7 time accidents increased to 76% 2020 1m litres water Funkin B Corp 42% Women in First cap saved through accreditatio
Slide 24: Building a multi-beverage branded portfolio
Building a multi-beverage branded portfolio Note : Dates shown in calendar years. Source : A.G. Barr management information 24
Slide 25: Driving efficiency and unlocking growth
Driving efficiency and unlocking growth Business change programme - subject to consultation Route to market strategy Boost integration symbols & independent retail channel ● Proposed full integration of Boost business ● Proposed closure of Barr Direct operation into Barr Soft Drinks including Moston
Slide 26: Business change programme - subject to consultation
Business change programme - subject to consultation 24/25 Annualised - 25/26 onwards Benefits - c.£4m One-off costs* c.(£5m) - Cash c.(£5m) c.£4m Payback <2 years Headcount c.195 impacted employees ● Estimated one-off costs of c.£5m, to be treated as adjusting items in 2024/25 financial statements ● P
Slide 27: Driving efficiency - Operating margin rebuild
Driving efficiency - Operating margin rebuild Investment phase Investment phase Margin rebuild phase 27
Slide 28: 2024/25 Outlook
2024/25 Outlook Mid single digit Group revenue growth: - Encouraging brand momentum Revenue - Low single digit pricing in a lower inflation market - Potential impact from year of transition- soft drinks business change programme Margins Margin rebuild plan underway Adjusting Potential c.£5m of costs
Slide 29: Summary
Summary CB OOOQVV VV VW odo a dann
Slide 30: Appendix
APPENDIX AGBarr
Slide 31: Acquisitions & Accounting
Acquisitions & Accounting Acquisition of Rio Like-for-Like Revenue 100% acquired Oct 2023 Total consideration - 23/24 12.3 Total consideration 12.3 Balance Sheet Value on Acquisition Brand value 9.0 Goodwill 3.3 Adjusting Items Other net assets - Total assets acquired 12.3 31